LOS ANGELES--(BUSINESS WIRE)--A joint venture between Western Avenue Capital and ALTO Real Estate Funds announced that it has acquired American Fork Shopping Center, a 148,180 square foot anchored retail center in American Fork, UT, a suburb of Salt Lake City, UT. The acquisition price equates to a mid-8% going-in cap rate, providing mid-teens cash on cash returns to the joint venture as it seeks to reposition the asset for the long term.
American Fork Shopping Center is situated on 9.32 acres at 648 East State Road at the southwest corner of East State Road and South 700 East in American Fork. The retail center is well-located on State Road, the main thoroughfare through American Fork, one mile north of Interstate 15. The property is 95 percent leased to national and regional tenants including Vasa Fitness, Jo-Ann Fabrics, Big Lots, Little Caesars and Del Taco, many of which are on long term leases.
“The property provides the ideal mix of cash flow and tenant mix, along with the opportunity to invest in the stable, growing market of Salt Lake City. We hope to grow our presence in the Salt Lake City metro and continue to work with professional and reliable capital partners like ALTO,” stated Jonathan Kasirer, partner at Western Avenue Capital.
Peter Auerbach, Chief Investment Officer at ALTO Real Estate Funds, stated: “This opportunity delivered the optimal combination of in-place income, growth potential and a great location. This is ALTO’s second investment in the Salt Lake City metro and we are planning to make more deals in the area. We are delighted to work with Western Avenue Capital who is an excellent partner.”
About Western Avenue Capital
Western Avenue Capital is a real estate investment, development and management company headquartered in Los Angeles, California. Over the past 40 years, its predecessor companies have established a diversified portfolio of retail, healthcare, multifamily and industrial properties across the United States. Western Avenue Capital’s total portfolio capitalization (managed and passive) currently exceeds $1 billion across 3 million square feet. Since 2009, Western Avenue Capital has acquired a portfolio that values approximately $100 million. Learn more at www.westernavecap.com.
About ALTO Real Estate Funds
ALTO Real Estate Funds is a series of closed end equity funds specializing in the acquisition of income-producing real estate assets located in the U.S. ALTO’s funds provide a stabilizing component to portfolios, combining low-risk profiles with a value-add approach to yield attractive returns. ALTO recently completed fundraising for its second fund, ALTO Fund II, for a total of $138 million from institutional and private investors. ALTO to date has invested in 26 properties, with a value of approx. $575 million representing a total area of 3.7 million square feet and 11 successful Exits. For more information, please visit www.alto-investments.com.